Revel's Situation Has Now Become Dire

The Revel resort opened in Atlantic City on April 2, 2012 at a cost of $2.4 billion. At the time, there were high hopes that the 20 acres casino and hotel complex located along the Boardwalk would help lift the city’s beleaguered gambling industry out of the doldrums.
A few months on, however, and Revel itself seems to have gotten into difficulties all of its own with the struggling casino having now notched up debts totaling more than $1.3 billion. Adding to Revel’s woes is the fact that many businesses dealing with the casino have yet to receive money owed to them. These include 40 construction companies which have served liens on Revel for $37.8 million.
In addition, New Jersey’s state senate president Stephen Sweeney said Revel currently owes Atlantic City $12 million in unpaid taxes, and recently wrote to the director of the state Division of Gaming Enforcement David Rebuck, explaining: “Since your letter, I have received a number of additional reports that Revel’s finances have deteriorated considerably, and that the situation has become dire. The casino appears to be burning cash at an alarming rate.”
Back in August, Revel had to seek a $100 million line of credit to help it
operate throughout 2013, but now a Revel spokeswoman said the company was close to securing extra funding expected to be locked down within the next 45 days.
Unfortunately, since opening Revel’s gambling revenue has been near the bottom of Atlantic City’s casinos and in Q3 it recorded a $37 million gross operating loss. Nevertheless, failure of Revel would be a major blow to Atlantic City’s future and as Roger Gros of Global Gaming Business Magazine explains:  “It would be pretty serious, because Revel is the model that Atlantic City needs to go after if it wants to survive as a city. They need to go after other areas of marketing, the restaurants, the shops, the shows, ways to make money other than gambling revenue.”